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Cloud Computing Explained
Most decision makers do not know enough about the cloud to make logical decisions on its potential use in their organization.
What is the Cloud?
The cloud is a term to mean a group of computers sitting outside of your network, as if they were up in the clouds... like the great big computer in the sky. We use the term cloud, because it is not specific - it often represents a lot of computers working together, versus a single dedicated server. The idea here is simple. Much like our brains, computers spend a lot of time not doing anything, so the idea is to minimize that downtime and give more users more processing power.
For example, imagine 10 separate, unrelated companies with a single small scale server each, which services them during regular business hours. Each company has to contract with an IT company or have inhouse IT in order to keep their server/network running. Some of these companies may feel that they need more power during peak usage hours.
One scenario is for a hosting company to contract with these 10 companies and move the servers up in the cloud, and then allow these 10 companies to connect remotely. So, if company A isn't using the horsepower, company B can use it. And if Company C needs some horsepower too, the hosting company can add another server to their cloud, and the users don't even have to think or worry about it. Also instead of 10 smaller servers it may be more cost effective for the hosting company to buy 2 or 3 more powerful servers which handle the same load, and can be accessed by anyone of the ten companies. These decisions and the required IT support and expertise is provided by the hosting company. What we are talking about here is economy of scale.
Cloud computing gives users the ability to store and use files and software remotely, rather than on a local hard drive or through their server environment. A lot of people may already be using cloud computing without even knowing it . Most of us have used web-based email like Hotmail and Gmail which are two examples of hosted solutions.
Some other examples of application available in the cloud (SaaS - Software as a Service)include ERP Accounting Applications , Customer Relationship Management (CRM), office automation software, document management solutions, scheduling systems, file storage, file synchronization and file back-up. Microsoft has invested heavily in making its business software accessible through the cloud at very attractive price points. Also companies like SaaS Plaza are offering aggressive price points for SaaS services such as hosting ERP solutions.
Advantages and Benefits of Cloud Computing
There are many advantages and benefits to using cloud computing for companies with remote users, multiple locations and international operations. One of the major advantages is the flexibility of anytime, anywhere access. With the Internet, staff can access information from home, on the road, from clients' offices or even from smartphones or tablets. Employees can also work collaboratively on files and documents, even when they're not physically together. Documents can simultaneously be viewed and edited from multiple locations.
Cloud computing can be quick and easy to get up and running. For example, how quickly you can set up a Hotmail account and start emailing? Downloading and installing software on your desktop in one-off scenarios will take much longer.
Cloud computing is often cheaper and less labor-intensive to install and maintain in the the long run. There is no need to buy and install expensive software and hardware, because it's already installed online remotely and you run it from there. The need to pay for expensive server resources and the need for maintenance, and disaster recovery solutions is also eliminated . With cloud computing, you subscribe to the software(typically on a monthly basis) rather than buying it outright. It also offers the ability to be quickly and easily scale up or down according to user demand.
Maintaining your own network can quickly get expensive. Servers and Server Software are expensive. Then you need to hire or contract IT Resource(s) to manage that hardware, and then you have to consider disaster recovery and"High Availability" (if your server goes down, a spare one takes over). All of it starts to add up quickly. And in the case of High Availability, you're going to have a server collecting dust for 99% of its life, waiting to fail over in case the primary server goes down.
With cloud computing, your hosting company takes care of all the details. They perform the backups, updates and routine maintenance, virus updates and scans, and they keep their server farms running so you can focus on running your business, not your IT department.
Is it time for you to jump on the Cloud Computing train? Ask us how!
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